nairalanda1:


The problem is, these subsides are why the sector cannot make enough of a profit to fix things.

Also, budgeting subsides is one thing, whether the subsides can cover the losses made by selling power below production cost, and by produiction cost rising over the year is another thing.

Remember, this is what government is paying for 2024, If cost of gas shoots up this year, the 1.6 trillion might not be enough to cover it. Also, oil prices may drop, and the money may not be there.

Finally, subsides are paid for by tax in developed countries, and are not given to everyone. In Nigeria, we pay for it from oil money, which from the word go is not enough for all of us, plus our tax to gdp is too low to pay for subsides.

microgiant:


Thousands of tractors block Berlin as farmers protest over fuel subsidy cuts

https://www.theguardian.com/world/2024/jan/15/thousands-tractors-block-berlin-farmers-protest-fuel-subsidy-cuts

and they are one of the most industrialised nation on earth.

nairalanda1 are you a robot?

microgiant:


are you a robot?

nairalanda1:


Well, I think it isn't good to ignore yours, because you show a basic misunderstanding of what I am saying.



Because power is sold below its cost of production on orders from government, the power sector runs at a loss.

The losses are in theory covered for by subsidies budgeted for at the begining of the year. In pracitice these are not sufficient to cover the losses because production cost keeps rising, and cannot be controlled by government.

One of the ways production cost risies is the fact that gas used in power supply is paid for in dollars. As you know, naira is falling against the dollar. You need more naira to pay for dollars. You can guess the result. (Gas companies refuse to accept payments in naira).

This is why the power companies cannot make a profit, and why you have to buy transformers and suchlike. It is because they are running at a loss.

(Let's not forget...AS MUCH AS 30-50% of NIGERIANS DO NOT PAY FOR POWER AT ALL...whether it is billing or meter.When you have a business that is running at a loss, and people are not paying, too, where is the money to fix and expand things going to come from?)



That is why you should vote out PDP, LP, APC, AND NNPP....and vote for one of the smaller parties. You should have done so in 2023, like I did, you can do so in 2027

Also, owners of DISCOS and GENCOS are not making return on investment. They are so broke that they cannot pay tax, and they cannot make ends meet.....because government sets their prices, and the subsidy government pays them is inadequate, and again a large percentage of their customers do not pay for power. All that adds up.



They arein't making as much money as they should. Three discos are already being run by their creditors instead of the original owners.. One other (rumored to be owned by Atiku) is under the defacto control of the government because they could no longer cope. The rest struggle.



Would you let the government set your prices, if you were a businessman, so that your poor customers can breathe more easily?

Is defending the right to set one's prices a defence of corruption in government ?

You are really missing the point.

ericmor:


SMH

nairalanda1:


Well, no matter how you feel, things must be sold at a profit...electricity included.

ericmor:


You people are everywhere, I just feel so sorry for the weak people of Nigeria most especially the uneducated ones that you uses English to deceive. Still SMH

nairalanda1:


Well, things must be sold at a profit, be it food, clothes, cars.....and electric power.

ericmor:


Wait, are you on 24hrs contract or what?

obesse:

Somebody needs to get Nairalanda1 a job! A real job!!! I made him an offer but he was too shy to accept it on this forum!

ericmor:


15k bawo, you must be living in face me and slap u where you sheared the bills the total amount is 90k lowest sometimes 100k and how they arrived at the amount is what we don't know

obesse:

Go get a life. At least for the sake of your unborn children.
I don talk my own o!
Shikenan!

ericmor:
...

Nbote:
Which one b dis againo ooooooo. The same subsidy you people have removed time and time again by jacking up electricity tariffs?? Now we know subsidy is just a name these bunch of thieves use to steal Nigerians blind
That IDIOT you mentioned is so useless that he is one of those , whose doings and undoing got Nigeria to where she is today. Very stupid imp I would have liked to slap very well in real life


In as much as I am tempted to highlight the foolishness in your comment, I'll focus more on highlighting the crass ignorance of your statement. Some of your try to sound wise and end up exposing the emptiness in your heads. Show me one of the civilized worlds where I have to pay for transformers purchase and maintenance, pay for installation infrastructure including cables and even prepaid meters and still pay for the units. The nauseating attitude of comparing developed parts of the world with these parts shows just how completely uninformed some of you are when trying to sound politically correct

Nbote:
Which one b dis againo ooooooo. The same subsidy you people have removed time and time again by jacking up electricity tariffs?? Now we know subsidy is just a name these bunch of thieves use to steal Nigerians blind


In as much as I am tempted to highlight the foolishness in your comment, I'll focus more on highlighting the crass ignorance of your statement. Some of your try to sound wise and end up exposing the emptiness in your heads. Show me one of the civilized worlds where I have to pay for transformers purchase and maintenance, pay for installation infrastructure including cables and even prepaid meters and still pay for the units. The nauseating attitude of comparing developed parts of the world with these parts shows just how completely uninformed some of you are when trying to sound politically correct

obesse:

Now you are sounding like a broken record!

obesse:

Dear Broken Record, please keep repeating the same thing. Don't stop! Take that as a command. Everybody knows you have nowhere to go; but I have to prepare for tomorrow's business. So, I must sleep now.
Little wonder they say an idle hand/mind is the devil's workshop!
Remember the instruction I have given you: keep repeating yourself like a broken record.
Shikenan!

obinna58:
It seems Nigeria can not just work, divide this country let everybody rest.

omokab:
maybe you are living in an industrial area . I live in 4 bedroom flat in Ibadan and what they brought is 15k.